Table of Contents ToggleBuy Inventory Now to Combat Supply Chain RiskIs There Anything You Can Do as a Small Businesses to Prepare?Basics of Inventory and Supply Chain Management for Small BusinessesWhat is inventory management?Here are some ways to help you manage risk:What are the 5 types of inventories?Why is inventory control important for a small business?How do I know if my inventory levels are too high or low?How do I balance my inventory?How do I manage inventory effectively for a business in steps?What is an inventory management system, and how important is it for business?What are the issues business owners face around inventory management?What is the difference between stock and inventory?Conclusion: Managing Your Business Inventory and Combating Supply Chain RiskBuy Inventory Now to Combat Supply Chain RiskDo you think your small business’s inventory management has worked out well? Have you been able to access the right products when you’ve needed them?Did you miss out on sales because of a lack of inventory or lack of capital?War, inflation, shortages, and worldwide conflicts affect your business.What can you do to combat it? Is your small business currently dealing with any of these challenges?Is this the time to borrow money? We will address this challenge head-on. More than ever, small businesses are raising their prices.In January 2022, the net percentage of small business owners who raised prices rose 61%.According to the National Federation of Independent Businesses, this increase was the highest reading since 1974. It is up from 74% in December.The inflation spiral leads to higher prices for finished goods, higher wages, and longer lifespans due to the rising cost of raw materials.There is a direct correlation between higher inventory, supplies, and labor costs and higher prices for small business owners, according to the NFIB.The Challenges:The market will inevitably change as a result of the current global conflicts.The Federal Reserve (Fed) indicates that interest rates will rise soon because of rising inflation.To better prepare, many businesses are stockpiling cash in light of the current state of world affairs.The Solutions:According to the Top 5 Small Business Inflation Strategies, you will likely be able to pay back the loan with less expensive money than what you borrowed because of low-interest rates and high inflation. When inflation is high, it’s a good idea to look for opportunities to invest your loan proceeds.Use Loan Proceeds to Your Advantage.Marketing that enhances and distinguishes your company’s identity (to build pricing power)Property and equipmentInventory InvestmentsRare or bulk-discounted stock is availableSuppliers and customers of other businesses Is There Anything You Can Do as a Small Businesses to Prepare?Examine Your Financial SituationTake a look to make sure you have enough cash reserves in your bank account to cover a rise in interest rates by checking your bank statements now.Maintain or improve your credit rating to increase your borrowing options.Find out the differences between SBA and term loans and how much you can save on your loan costs.Minor rate increases won’t impact your borrowing because borrowing rates are at historic lows. What can we learn from the funding trends of 2021?76% of small businesses requested funding of less than $250,000Customers of small business loans were only able to meet 48 percent of their financing needs.Many small businesses are dissatisfied with high-interest rates from other online lenders.Sunwise Capital is the place to be right now. We help small businesses connect with banks by providing an SBA or term loan at a low-interest rate.Prices and DemandFinancing and strategic planning are always affected by the state of your industry. Cash StrategyWhen interest rates rise, there is a pressing need for smart capital. TrendBanks want to lend money to small businesses, and it is in your best interest to steer clear of unscrupulous lenders and secure the best possible loan terms. SimplicityOwners need cash quickly. Applying is free of charge. You only need a few minutes of your time.Online lender Sunwise Capital has a network of banks that provide SBA loans. We speed up the SBA loan application process and assist with the application itself.With a network of preferred SBA and other lending banks, we help our clients increase their chances of getting a loan by using the most likely banks to approve their applications.Products We’re ProvidingLending options are available through the Small Business Administration (7a).Between $30,000 and $350,000 is the maximum loan amount.Working capital, debt refinancing, and new equipment purchases are examples of the use of funds.Rates 37.5 percent on $30,001-$49,999 in Prime IncomeBetween $50K and $350K, Prime + 2.75 percenta 10-year loan with no penalties for early repaymentTerm Loans from the Bank.$30K to $500 thousand is the max loan amount.New Equipment Purchase, Debt Refinance, Working CapitalRates From 6.99% to 29.99 percent (based on loan term, credit, and financial profile of applicant) as a fixed rateNo penalty for early repayment for a 2- to 5-year loanTo Qualify, Apply Here. Basics of Inventory and Supply Chain Management for Small BusinessesTo ensure that your small business is on track for success, it’s essential to conduct regular business assessments. Inventory management is a critical part of your business.Did you lose money because you had too much stock on hand?We follow up on securing capital with basic inventory management techniques. The remainder of this article discusses what to look for in good inventory management and some best inventory management practices. What is inventory management?Supply chains are complex networks of people, processes, products, information, and technology that connect suppliers, manufacturers, distributors, retailers, customers, and consumers.They are critical to the success of any business and are also vulnerable to disruption.Inventory shortages can cause significant financial losses and damaged brand reputation.Ask yourself what you’ll do if your business faces a supply chain crisis?First, identify the problem. Then take steps to prevent future disruptions.Here are four ways to buy inventory now to combat supply-chain risk:1. Buy Inventory Now to Combat Supply Chain RiskBuy inventory now to combat supply risk.When you buy inventory now, you’re buying it at a discount, which means you pay less than you would later.This strategy buys you time to prepare for potential supply-chain disruptions.For example, if you buy inventory now, you won’t have to rush to find another supplier after a major supplier goes out of business.2. Create a Plan to Prevent Future DisruptionsCreate a plan to prevent future disruptions. The number one step is to identify the risks.Then create a plan to mitigate those risks.Next, implement the plan.Finally, evaluate whether the plan worked. If not, adjust the plan.3. Use Technology to Improve Supply ChainsUse technology to improve supply chains.Technology can help companies monitor their supply chains, and it can also help them manage inventories better.For example, an online platform can track shipments and provide real-time updates about the location of shipments.Companies can use this data to optimize their supply chains.For instance, they can determine which warehouses are most efficient.Or they can compare shipping costs between different locations.The bottom line:Buy inventory now to avoid supply-chain disruptions. Then create a plan to prevent future ones. Implement the plan. Evaluate whether the plan worked. Adjust if necessary.4. Learn How to Manage Risk Learn how to manage risk. Risk management is vital to every business. But it’s especially crucial for companies that face supply-chain risk. Managing risk requires understanding the risks and potential disruption and reducing the likelihood of problems occurring.Here are some ways to help you manage risk:Identify the Risks: Identifying risks is the first step to managing them.These could include:What are the 5 types of inventories?1) raw materials2) work in process3) finished goods4) obsolete or scrap5) financial assetsDead stockDeadstock is any item that is purchased but not used.Examples of dead stock include:* Parts you have not assembled* Unused inventory itemsWhy is inventory control important for a small business?Inventory helps you manage your cash flow and make sure you have enough money to pay bills, buy supplies, and cover payroll.Customer ExpectationsYour customers expect products to arrive on time.They want to know when you will deliver their order.If you don’t meet these expectations, they may stop doing business with you.That means losing sales and revenue.Competitive AdvantageA competitive advantage is something that gives your company an edge over competitors.It allows you to charge more than your competitors without raising prices.You can also offer better service and quality.This advantage helps you stand out from the crowd. How do I know if my inventory levels are too high or low?If your inventory levels are too high, you may be able to sell more products at higher prices.However, if your inventory levels are too low, you might not be able to meet customers’ needs.Inventory AnalysisWhy does inventory fluctuate?Supply and demand affect inventory levels. When there’s a lot of need for something, suppliers increase production.When there’s less demand, they reduce output. When the supply of a product increases, manufacturers lower their prices.When the demand for a product decreases, retailers raise their prices. How do I balance my inventory?You know you can’t always control what happens outside your company.The best strategy is to keep enough safety inventory on hand so that you don’t run out when unexpected events occur.Excess inventory means you’ll have to spend more money because you’ll run out of money and have to pay for more storage space. The loss of revenue due to lack of business inventory and a lack of customer confidence in your ability to offer the products you claim to sell directly results from having too little stock.Customer SatisfactionThe most common reason your customers are unhappy with their service providers is poor customer satisfaction.It’s also one of the main reasons why companies fail.Customer satisfaction is an intangible asset that has a significant impact on the success of any organization. How do I manage inventory effectively for a business in steps?1) identify what needs to be inventoried2) determine how much inventory should be kept3) decide where it will be stored4) determine which items are critical5) set up procedures for keeping track of inventory What is an inventory management system, and how important is it for business?An inventory management system is a set of processes designed to track inventories and provide information about them.Any business needs to have an effective inventory management system because it allows you to keep track of your inventory to purchase when you need it.What are the issues business owners face around inventory management?Many things go into keeping inventory at the right level. Here are some common problems:1) not having a good plan for inventory control2) not knowing how to calculate inventory quantities3) not being able to forecast accurately What is the difference between stock and inventory?Stock refers to items that are on hand but not yet sold. Inventory refers to things that have been sold and are currently available for sale.Products in your inventory are those you make available for sale to the public, and the items you keep in stock are both the finished goods you sell and the raw materials and equipment you use to produce them. Conclusion: Managing Your Business Inventory and Combating Supply Chain RiskTo ensure that your business is on track for success, it’s essential to conduct regular business assessments. Inventory management is critical to the success of your company.What are the results of your inventory management efforts as a small business? Has the product you needed been readily available? Did you miss out on sales because of a lack of inventory? Or did you suffer a loss due to a scarcity of funds?Maintain a positive bottom line by cutting costs, increasing cash flow, and working with a lender to provide you with the working capital you need.